TechFlow News, May 27: The U.S. Securities and Exchange Commission (SEC) is considering revising decades-old rules that prohibit companies from engaging in certain communications during the initial public offering (IPO) process, aiming to revitalize IPO activity. SEC Chair Paul Atkins, speaking at an event at Stanford University on Tuesday local time, welcomed reforms to the so-called “gun-jumping” rules—rules that have not been updated for over two decades.
Atkins stated: “The ways businesses communicate with employees, customers, and potential investors today bear almost no resemblance to those of the past. I look forward to establishing a more harmonized set of rules that provide clarity, simplicity, and alignment with today’s technologies.” Atkins has previously expressed regret over the decline in the number of U.S. publicly listed companies since the 1990s and pledged to ease regulations and formulate industry-friendly policies to stimulate market activity. Last week, the agency unveiled a comprehensive proposal that could temporarily exempt new large issuers from many of its most stringent disclosure requirements. Part of the proposal would allow “large accelerated filers” to skip certain requirements for up to five years. The agency will solicit public comments on the proposal over the next 60 days. (Jinshi)
